Mid-Long TermBusiness Strategy Update

September 15, 2020
Global CEO andRepresentative Executive Officer

Shu Ishibashi

Communication Plan
-Part 1 - July 8, Mid-Long Term Business Strategy Framework■ Complete picture of Mid-Long Term Business
Strategy Framework
Bridgestone 3.0 (Third Foundation)- Part 2 - August 7, 1st half financial results announcement■ 1st half financial results / full-year forecast■ Mid-Long Term Business Strategy Update

Core & Growth Business／ Direction of Portfolio Management- Part 3 - September 15, Mid-Long Term Business Strategy Update @Bridgestone Innovation Park
■ Mid-Long Term Business Strategy Update• Technology Innovation

Rebuild earning power & trigger for next growth• Bridgestone Innovation Park (Phase 1)
Bridgestone Innovation Gallery Opening- Begin with Interaction

November 12, 3rd Quarter financial results announcement■ 3rd Quarter financial results / full-year forecast■ Mid-Long Term Business Strategy Update
1/26

Bridgestone Innovation GalleryFebruary, 2021 Mid-term Business Plan announcement■ Mid-term Business Plan

Based on Mid-Long Term Business Strategy Framework

Technology Innovation supports our VISION toward 2050
Serving Societywith Superior Quality

Dan-Totsu

FoundationA truly global company

Tire & Rubber

Global Company(Second Foundation)
Solutions Company(Third Foundation)

GlocalManagement

Japan ・ Asia
Global Development

Tire & Rubber
×Solutions

CorporateGovernance1988 Firestone merger
2007 Bandag acquisition
2019 Webfleet Solutions acquisition

Technology Innovation

Continuous generation of innovation
through the combination of “Real X Digital”

VISION
2/26

Toward 2050, Bridgestone continues to provide social value and customer value,
as a sustainable solutions company

Technology Innovation and Core Business & Growth Business

CMobilitySolutions

B

Tire CentricSolutions

A

Tire & Rubber

Value amplified(Spiral up)■ Growth Business- Expand solutions business- Accelerate “spiral-up” with Core BusinessRetread, Webfleet Solutions, etc.
Bridgestone growth engine■ Core Business- Rebuild earning power

Reformation of expense and cost structure
Operational excellence
Bridgestone profit center

Technology Innovation contributes to Core Business & Growth Business as a trigger for next growth
3/26

Global Business Scenario (2020-2023)
COVID19
impact

2020

2021

2022

2023

Estimated second wave

Impact continues throughout the year

Gradual recovery

RecoveryCrisis management
Rebuild earning power

Stage

StrategicFocus

Transformed
new Bridgestone

Strategic growth investment■ “Safety First”

Rebuild earning power■ Cash oriented management

Reformation of expense and cost structure
Operational excellence：Premium business strategy (EtoE)

Strategic growth investment
Growth Business : Retread / Webfleet Solutions
Core Competence : DX / Innovation■ Reforms

・ Core Business :Strengthen premium categorybusiness・ New business portfolio
・ Profitable resilient business structure■ Realize new growth strategy
・ Growth Business :Expansion of solutions business

Bridgestone Innovation Park (Total investment in Phase 1: approx. 30 Bil JPY)
Bridgestone Innovation Gallery／B-Innovation／B-Mobility

Technology
Innovation

4/26“Innovation for Solutions”• Bridgestone DX：Material・ Product development・ Manufacturing・ Engineering chain• From interaction to co-creation“With greater data, faster, easier and more accurate” / Dan-Totsu products development and Dan-Totsu solutions evolution

RealDigitalEvolution of Mobility & Tires and Bridgestone
1900s
Motorization

B.C. 4000
Mobility

Dirt roads

Stone Paved

Expansion of Paved Roads

Carry Heavy
goods

Carry people & goods
by manpower and horses

Carry more people and heavier goodsby vehicles

1867
Wooden wheels
WoodenSolid Tires

1888

PneumaticTires

New Urban
Transportation
Diversified mobility

1970s
Bias Tires

Radial Tires

RubberInvention of wheel
as one of the oldest innovation@Mesopotamia

Bridgestone 1.0 ～ Bridgestone 2.0
1931Foundation ofBridgestone

Tires

MaaS・CASE

Required high-speed drive

Bridgestone 3.0 ～

1997
2002
Formula1 Moto GP

1962
Technical Center(Tokyo – Kodaira)2020 - 2021
Bridgestone Innovation Park（Phase 1）

1979~
1981~

Innovativetires
1986~

1988~

2014~

2019~

Bridgestone’s Dan-Totsu products
5/26

Bridgestone Innovation Park
Bridgestone 1.0 ～ Bridgestone 2.0

1960 Tokyo Plant
establishment

Vision of Kodaira-Tokyo Renovation- Bridgestone Innovation Park‐
1962

Technical Center

Contribution to motorization in JapanThe newest model plant in 60’s, with the newest plant layout
Produce the best products with collaboration of plant andtech center facing each other

Creation of a community
with regional society and Bridgestone

Built Employee apartments, hospitals, wellness facilities,
donated elementary school

Contribution to the region‘s environment andteammate’s health
Plant greenscapes around facilities and managed exhaust andother emissions as well as noise and dust

6/26

Bridgestone 3.0 ～Creating future value from Kodaira,the birthplace of Bridgestone’s technology
Mobility

Contribute to safe and comfortable mobility for society

PeopleContribute to active and fulfilling life for allEnvironment

Contribute to sustainable global environment

7/26

( Phase 1 )Mini test course（2021～）

Innovation center（2021～）（Open in Nov. 2020＊）

Global innovation hub to generate new values through innovation- Begin with Interaction toward Co-ideation, Co-R&D and Co-creation* Opening date will be determined with COVID-19 situation

8/26

Our historyof challenge

Our contribution
to mobility

Bridgestone DNA, evolution and the new chapterNew values - Bridgestone deliver to customers and society（Open in Nov. 2020＊）
Co-creation andinnovation

Experience Bridgestone`s Co-creation and innovation activities and possibilities

New interactional site with customers, stakeholders
and societies

To the new chapter
Experience Bridgestone`s activities toward the new chapter through Real X Digital journey

9/26* Opening date will be determined with COVID-19 situation

Co-creation

Interaction

Co-creation thru Real X Digital activities
with partners

Technical proposal / Look and touchExperience innovation and its potential

Co-R&D

Research & development with partnersDevelop and test

10/26

Innovation center（2021～）

Co-ideation

Ideation utilizing VR
Sharing ideas in timely manner

Mini test course (2021～）

Innovation center（2021～）

Combination of Real X Digital enables agile development
by repeating the process – develop and test immediately
11/26

Global innovation sites & Centers of Excellence (CoE)Unique Algorithm
Wear Prediction Model

Digital Simulation
Commonality ・ Modularity

Core of Technology Innovation

Technical Center（Tokyo ・ Kodaira）

Technical Center（Akron, OH, U.S.）

Technical Center (Rome, Italy)

Accelerate innovation
through a global network of CoEs and in combination with Real X Digital
12/26

Technology Innovation

Senior Vice President and Executive Officer, Global CTO

Masato Banno

13/26

Concept of Bridgestone`s Technology Innovation
Technology Innovation supports sustainable business models(creation of social value and customer value, sources of competitive advantage)(Technology, Quality, Sustainability)

Social value and customer value

Strong Real & Digital Combination

DX Evolution

Innovation

DX for Bridgestone
DX for society & Customer

Dan-Totsu Products
Dan-Totsu Solutions

Rubber Mastery
Strong realLong Journey

Master the rubber as a strong Real, and creating innovation through combination with Digital (DX*)*DX= Digital Transformation

14/26

Bridgestone's DX*
Engineering Chain

Product Strategy

Material

ProductDevelopment

Contact toSociety & Customer
Manufacturing

Provide Solutions
Value Chain
Procurement

2nd New value creation
1st Start from visible value

Realization of “see, analyze, manage“

Supply plan

Manufacturing

Logistics

Sales
ServiceUse

Market3R*DX= Digital Transformation

15/26

Bridgestone’s DX
エンジニアリングチェーン
EngineeringChain

Value “spiral-up”
by feedback to development

Real(Skill of Takumi)
Mastercraftsmanship

Material test data, measured data

MaterialDigital

Material simulation

Design know-how, test data, measured data

Designingtechnology

ProductDev.

Evaluation
technology

Tire performance simulation

Rubber and manufacturing data,
craftsperson skills

Customer data of tire and mobility

Mfg.

Contact tosociety &customer

Manufacturing simulation“Digital Twin” connecting to market

Material Informatics
AI utilization
Solve the complexity ofrubber in micro-level

Tire model which can replicate
the complexity of rubber

System model adjusted for thecomplexity of rubber and tire

Modeling the complexity of rubber
in each process

AI modelSimulation

Modeling the change of tires after usage

The combination of strong Real & Digital : Rubber Mastery/Simulation/Unique Algorithm
16/26

Rubber Mastery, Bridgestone`s unique strong Real Extensive experience based on all vehicles, roads and usage conditions “Bridgestone knows the roads of the world”

Extreme Measurement and Analysis Technologies

Long life Material Technologies

Durability
 Highly Acclaimed Product Lineup on market

Innovation through combination of strong Real and Digital technologies
17/26

Innovation through combination of strong Real and Digital

Advanced Design Simulation “See, Analyze, Manage”
Strong Real (market and tire database)

Digital×
Structural CAE*Advanced
Design Simulation

Grounding condition simulation on allroad surfaces

Combined simulation of tires and vehicles, etc.

Accelerate creation of social value and customer value through Dan-Totsu Products*CAE = Computer Aided Engineering

18/26

Innovation through combination of strong Real and Digital

Material and Compound Simulation “See, Analyze, Manage”

Strong Real (obtain accurate information fast)High-speed automatic
experimental facility

High-precision
analysis laboratory

Digital×Material Informatics (Molecular CAE*)

Material andCompound Simulation

Create innovativematerials

Mix up to nano level

Extend rubber

Crack growth

Accelerate innovative material development through combination of strong Real and Digital*CAE = Computer Aided Engineering

19/26

Innovation through combination of strong Real and Digital

Unique Algorithm “See, Analyze, Manage”
Strong Real × Digital

Anti-weight

Tire Mechanism
・Grounding・Wear・Fatigue
・Unique deformation

Real-time utilization of large quantities of market
information with high precision

Tire market data

Anti-cut

Customize
Wear
UP
Dan-Totsu performance
during actual use

Anti-tear Tire performance prediction
Residual groove depth

Unique System Simulation

Driving Big Data in market

ConventionalproductUnique modelAnti-heatUP

Wear

Anti-heat

Unique Algorithms-Mechanism Knowledge

Vehicle driving data

 Dan-Totsu performance
Customize performance

Utilize for solutions
・ Maintenance efficiency
・ Operational advice

NewWear prediction
Worn outMileage

Accelerate Dan-Totsu solutions with realization of real-time performance forecasts using our unique algorithm
20/26

Innovation through combination of strong Real and Digital

Aircraft Solutions - Japan Airlines (JAL) Collaboration
Prediction of tire performance status

Our unique solution platform – Bridgestone T&DPaaS

Aircraft data×Coretechnologies
Evolve into solution business utilization strength of tires and rubberRealDigital

Constant grounding① Taxing modesame as other mobility② Take-of andlanding mode

Instant grounding
Aircraft-specific

Automatic analysis

Aircraft model
Tire input conv.
technology

×Tire condition
calculation
logicAnalysis module

Unique machine learning
Algorithm① Reduction of maintenance man-hours② Inventory reductions③ Reduce environmental impact

Creating customers’ and our values and social value
Expand technologies and services fostered in aircraft solutions to truck and buses, passenger cars, etc.
21/26

Innovation of Engineering chain

one part, one sheet drawing

Bridgestone's unique tire development
Combination of "Real" and "Digital"

Offer Dan-Totsu products
Create social value and customer value

Feedback to product development

Develop "goods base"Technology for completeness and integrationof products

Aggregation of the skills andonsite abilities of masters
Designaccuracy

Innovation of Engineering Chain
Value Spiral Up(“With greater data, faster, easier and more accurate”)

Experience and capabilitiesof designers

Actual vehicle Experience and capabilities
of evaluators
evaluation

Obtain large volume of accurate market
information in real time

Analize through unique algorithmsTire market data

Vehicle running dataInnovation of Engineering Chain by Real and Digital  Value Spiral up
Bridgestone’s new way of working
22/26

Automatic analysis
Analysis module( Phase 1 )Mini test course（2021～）

Innovation center（2021～）（Open in Nov. 2020＊）

Global innovation hub to generate new values through innovation- Begin with Interaction toward Co-ideation, Co-R&D and Co-creation*Opening date will be determined with COVID-19 situation

23/26

Innovation for solutions

Accelerating Product Development
Trial manufacture of each component

Market Data

Internal and external
collaboration
Interaction to co-creation

Interaction and Ideation
High-speed automatic
experimental facility
Material, analysis lab
AI material design

New ideas

Demonstration experimentHand-sensitivemeasurement

Tire input
measurement

Quick and Accurate
Creation

Idea Generation

3D PrinterVR×Immediate Demonstration
Mechanism Analysis

Real measurement and realexperience on real roads

High-precision Measurement
and Indoor Study

Indoor measurementwith Real & Digital

Vehicle stiffness measurement

Accelerate product development by engineers with "small, quick-moving thinking”
24/26

Manufacturing
simulation

Innovation for solutions

From interaction with empathy to co-creation

Accelerate creation of social value and customer value with external partners by
not only mutually complementing but also fusing core domains,Interaction

Co-R&DCo-ideation

Wireless PowerIn-wheel
MotorCo-creation

Rubber Sensing Technologyutilizing AI
 Start new initiative “Open Innovation Hub” on a trial basis in 2018
 Get interaction with empathy of our products and technologies
 Co-ideation the integration of core competencies with all who have empathy
 Execute co-R&D and co-creation while checking the ideas

 Collecting various technologies and core competencies in cooperation with many companies
and customers
 Creating New Social and Customer Value through Co-Creation Activities with stakeholders

×New challenges that leverage our core competencies
Co-creation of value by increasing touch points internally and externally
25/26

Bridgestone’s Technology Innovation toward 2050
Strong Real & Digital combination(Technology, quality, Sustainability)

Social value and customer value

Air-free concept®

DX Evolution

Simulation and Algorithm

Bridgestone contributes to provide social value andcustomer value, as a sustainable solutions company.

Lunar tire

Innovation

DX for Bridgestone
DX for society & customers
Unknown material
Sustainable Materials

Measurement and analysis technologies

Rubber Mastery

Innovation and co-creation

Strong RealDan-Totsu performance
Solid tire
Wood/steel wheels

Bridgestone 1.0-2.0

Bridgestone 3.0

Accelerate Dan-Totsu products development and Dan-Totsu solutions
through innovation of engineering chain by “Real × Digital”
Creating social value and customer value through continuous innovation to the future
26/26

2050

Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies and beliefs and other statements that are nothistorical facts are forward-looking statements about the future performance of Bridgestone. Forward-looking statements include, but are not limited to,those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might"
and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral orwritten forward-looking statements may also be included in other materials released to the public. These statements are based on management's
assumptions and beliefs in light of the information currently available to it. Bridgestone cautions you that a number of important risks and uncertainties
could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance onthem. You also should not rely on any obligation of Bridgestone to update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise. Bridgestone disclaims any such obligation.

Copyright © Bridgestone Corporation